Leaving UAE with a bank loan

If you have a loan and are thinking about leaving UAE with a bank loan you need to check the following. This post covers the possible action that the bank may take against you and what are your options. 

Some reasons why you may have had to leave UAE or thinking about leaving.

• Covid
• Job loss
• Death of a close one
• Health or medical emergency
• Emergency in your home country
• Better opportunity elsewhere, in another country.

Whatever may be the reason for you having to leave UAE, the banks and the UAE Laws will not treat you any differently. Although it is wise to keep the paperwork and proof events that were not in your control. Let go through the consequences that you may have to face.

• Initial stages after leaving UAE with a bank loan.

During the first few months of non payment of your EMI, the banks will send reminders to you via call and mail. The intensity of these calls and the tone of the email may change with time depending on the bank. This starts from the first month of non payment. 

Next the bank will outsource this job of calling email and coercing you into a patent to a third party. This third party can be a call center, a legal firm, a collection agency or debt recovery agency. The banks will outsource this typically in months 3-6 unless the bank decides otherwise. 

• Check Insurance, before you are leaving uae with a bank loan.

If you have insurance please check with your insurance company if you are covered for job loss. In case you are, you will need to complete the formalities within 6 months. Also, make sure you take in writing the amount that is covered under the insurance and what is the balance that you need to pay.

• Consequences in your home country.

Between 8-12 months the bank may decide to pass on your account to a third party in your home country. The third party in your home country will try to contact you through mail, calls as well as home visit. There are many rules and regulations that need to be followed. For example,

•  They cannot call you more than 4 times a week. 
• They cannot call you family or friends.
• They cannot use rough language or tone when speaking with you.
• They cannot intimidate or threaten with consequences of any kind.
• They are not allowed to visit you, unless you allow. In January of 2022 the central bank of UAE made amendments to Consumer Protection Regulation (Circular No. 8/2020) to protect the consumer and their information. These amendments safeguard the privacy and dignity of the defaulter.

If you find yourself in such a situation and want to check your travel or immigration ban click here. 

• What are your options and what can you do?

If the third party breaks any of the above rules you can simply complain to the central bank of UAE, you’re concerned bank, the local police station. Before you do this you will need to make sure that you have the necessary proofs. For example, if they have visited your house, take a photo of the person, his company ID card, and the authority letter given by the bank. If he is unable to produce any of these you can immediately make a complaint to the police for harassment. 

If you don’t wish to do any of this, you can simply,

• Ignore them.
• Ask them to proceed legally and do whatever they can.
• Tell them you do not have the money and cannot pay. 

All of the above reactions from you will force them to back off and not keep hounding you. The key here is to make them realize that they will not be able to make a commission out of you. Once they realize this they eventually will stop following up with you. 

99% of the time there is absolutely nothing that these third party agencies can do you in your home country. Its only threats and intimidation tactics that they have. Once they realize its not going to work they will back off. 

The balance 1% is when the outstanding amounts are in the 10’s of millions and multiple banks have come together to chase you. Even in such cases it is not easy and may take a lot of effort, time, money on the bank’s part.

If you still have any query or question you can simply book a complimentary consultation by clicking here.